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Does EU Framework Program Participation Affect Regional Innovation? The Differentiating Role of Economic Development

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  • Attila Varga
  • Tamás Sebestyén

Abstract

Framework Programs (FPs) of the European Union (EU) finance collaboration among research units located in different parts of Europe and as such they mediate the flow of a significant amount of knowledge across distantly located European regions. Contrary to expectations, no evidence has been found in the literature on the supposed positive regional innovation impact of FP participation. We assume in this article that the overall missing impact of EU FP participation on regional patenting masks an important spatial regime effect. Our results are supportive of this assumption. While FP research subsidies act as a substitute for funding from other sources in regions of old EU member states, innovation in lagging regions in Central and Eastern Europe tends to rely more on the external knowledge transferred via FP-funded research networks to compensate for their less developed local knowledge infrastructures. Our findings are important, as they suggest that, in combination with other policies, strengthening research excellence and international scientific networking in relatively lagging regions could be a viable option to increase regional innovativeness.

Suggested Citation

  • Attila Varga & Tamás Sebestyén, 2017. "Does EU Framework Program Participation Affect Regional Innovation? The Differentiating Role of Economic Development," International Regional Science Review, , vol. 40(4), pages 405-439, July.
    • Handle: RePEc:sae:inrsre:v:40:y:2017:i:4:p:405-439
    DOI: 10.1177/0160017616642821
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    2. Patricia Peñalosa & Carolina Castaldi, 2024. "Horizon Europe: a green window of opportunity for european peripheral regions?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 44(3), pages 251-285, September.
    3. Komlósi, Éva & Sebestyén, Tamás & Tóth-Pajor, Ákos & Bedő, Zsolt, 2022. "Do specific entrepreneurial ecosystems favor high-level networking while others not? Lessons from the Hungarian IT sector," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Theresa Bürscher & Thomas Scherngell, 2024. "Potentials for Reducing Spatial Inequalities in Innovation: A Spatial Econometric Perspective," Growth and Change, Wiley Blackwell, vol. 55(4), December.
    5. Meda Andrijauskiene & Daiva Dumciuviene & Alina Stundziene, 2021. "EU framework programmes: positive and negative effects on member states' innovation performance," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(3), pages 471-502, September.
    6. Anna Varga-Csajkás & Tamás Sebestyén & Attila Varga, 2023. "Dynamics of collaboration among high-growth firms: results from an agent-based policy simulation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 353-377, April.
    7. Roberta Capello & Andrea Caragliu, 2021. "Merging macroeconomic and territorial determinants of regional growth: the MASST4 model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 19-56, February.
    8. Sebestyén, Tamás & Braun, Erik & Bilicz, Dávid & Iloskics, Zita, 2024. "Egyetemek és vállalatok kutatási együttműködése a helyi tudástermelésben [Research cooperation between universities and companies in local knowledge production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1199-1221.
    9. Meda Andrijauskiene & Daiva Dumciuviene & Jovita Vasauskaite, 2021. "Redeveloping the National Innovative Capacity Framework: European Union Perspective," Economies, MDPI, vol. 9(4), pages 1-30, December.
    10. Horváth, Krisztina & Berbegal-Mirabent, Jasmina, 2022. "The role of universities on the consolidation of knowledge-based sectors: A spatial econometric analysis of KIBS formation rates in Spanish regions," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    11. Tamás Sebestyén & Orsolya Hau-Horváth & Attila Varga, 2017. "How to get from the periphery into the core? The role of geographical location and scientific performance in network position in the field of neuroscience," Letters in Spatial and Resource Sciences, Springer, vol. 10(3), pages 297-325, October.
    12. Meda Andrijauskiene & Dimosthenis Ioannidis & Daiva Dumciuviene & Asimina Dimara & Napoleon Bezas & Alexios Papaioannou & Stelios Krinidis, 2023. "European Union Innovation Efficiency Assessment Based on Data Envelopment Analysis," Economies, MDPI, vol. 11(6), pages 1-19, June.

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